UK inflation rate falls to 3%

Inflation in the U.K. fell for the first time since June 2017, according to data from the Office for National Statistics (ONS) released on Tuesday.

The inflation rate dipped to 3 percent in December after reaching a six-year high 3.1 percent in November .

“The downward contributions were partially offset by an increase in tobacco prices, reflecting duty increases that came into effect following the Autumn Budget, along with an increase in petrol and diesel prices.” ONS said in it’s statement.

The Bank of England had previously estimated that inflation would reach its peak by the end of last year and would slow down to a target rate of 2 percent within the year.

The bank had increased its interest rate from all times record low 0.25 to 0.50 percent in November 2017.